Inuvik Petroleum Show wraps up, worries over Mackenzie pipeline delays remain
Last Updated: Friday, June 19, 2009 | 5:21 PM CT
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As delegates left Inuvik, N.W.T., Friday from the ninth annual Inuvik Petroleum Show, their concerns linger over the long wait for progress on the proposed Mackenzie Valley natural gas pipeline.
This year's trade show, which ran Wednesday and Thursday, gave delegates a chance to discuss the pipeline's regulatory delays, particularly the long wait for the Joint Review Panel to issue its environmental assessment of the project.
The panel's review, which began in 2004, is expected to be completed at the end of this year.
"We hope the next time we see you, we have bigger and better news," O.D. Hansen of the Aboriginal Pipeline Group told delegates during the conference.
The Aboriginal Pipeline Group is part of the consortium led by Imperial Oil to build the 1,220-kilometre pipeline to connect the Mackenzie Delta with Alberta, where it would connect with existing networks.
Imperial Oil officials also did not have much new to tell delegates about continuing negotiations with the federal government on royalties and loan guarantees.
"There is a lot of work going on, and a lot of discussions between the proponents and the federal government on the matter of the fiscal framework and those efforts continue as we speak," said Randy Ottenbreit, Imperial's executive in charge of development of the Mackenzie pipeline.
Political leaders tried to rally support for the pipeline during the trade show, hoping to restore a sense of public urgency in the project.
"As we look forward in our region, we don't allow the pessimism to overtake the opportunities that we have," said Richard Nerysoo, head of the Gwich'in tribal council in Inuvik.
Local businesses suffering
Local businesses that have their hopes pinned on the pipeline's construction are looking for ways to endure the wait.
For example, the Mackenzie Hotel has been losing money as the oil and gas industry deserted the region in light of the economic slowdown.
"The new hotel — we put in a big investment. And with so much uncertainty, that's really down," said Russell Newmark of E. Gruben Transport, the hotel's majority owner. "If the pipeline doesn't go ahead it's going to be a real struggle."
Newmark said the slowdown and the pipeline delays have taken a toll on the Tuktoyaktuk-based company overall: "We were down 40 to 50 per cent from the year before."
However, Newmark added, the company does have contracts to build a road in the Tuktoyaktuk area, as well as to clean up two old DEW line sites.
Government spending has kept Inuvik going, with territorial spending currently helping to build a new school, office buildings and house in the town.
"So it's not totally that nothing is happening. There are things, but it's up to us to try to grab those opportunities for the Inuvialuit as best we can," said Nellie Cournoyea, head of the Inuvialuit Regional Corp.
Government construction money will flow for at least the next three years. If there is still no commitment to build the Mackenzie pipeline by then, the town's future may be in question.
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